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Key changes introduced in the 1996 federal budget changed the way child support payments are taxed It used to be that the payer was able to claim a deduction for the payments made and the recipient spouse was taxed on those payments While the arrangement may have been frowned upon by many who received the child support (because they were taxed on the payments), it had the advantage of reducing the amount of money ending up in the tax collector s coffers Here s why: The payer spouse usually has a higher marginal tax rate than the recipient So the deduction that was claimed usually saved the payer more in tax than it cost the recipient spouse

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enry and Rosette are separated Henry earns $70,000 annually and his marginal tax rate is 42 percent, while Rosette earns about $35,000 and

1. The N9000 does not have a pointing device. Pointing is therefore done by selection using the scrolling bars. Scrolling down causes selection to jump from one hyperlink to the next; scrolling up causes it to jump to the previous link. 2. In cellular devices, connection rate is limited to 9600 bps, which is slower than the fixed-line rate. Connection can also take up to 30 seconds, considerably slower than the fixed-line equivalent. Web users may be accustomed to slow downloading times, but a long connection time is a new

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has a marginal tax rate of 35 percent Last year, Henry paid Rosette $10,000 in child support He claimed a deduction, which saved him $4,200 in taxes ($10,000 42 percent) Rosette, on the other hand, reported the $10,000 as income and paid $3,500 in taxes Combined, Henry and Rosette beat the tax collector by $700 ($4,200 less $3,500) Since the tax savings were in Henry s hands, he agreed to spend the $700 savings directly on his child

For child support agreements entered into after April 30, 1997, the payer is not allowed to deduct the payments made On the ip side, the recipient is no longer required to report the payments as income If you had an agreement in place before May 1997 that either provided for the deductibility and taxability of payments made, or was simply an agreement entered into prior to the federal budget of March 6, 1996, then your agreement escapes the rules that exclude the payments from being deducted by the payor and taxed to the recipient If, however, you varied the amounts in the agreement after April 30, 1997, then the new rules will apply Follow me Who really wins under the new rules The tax collector If we go back to Henry and Rosette s story, the $700 savings enjoyed on a combined basis is gone under the new rules Consider keeping pre May 1997 agreements intact to avoid a

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windfall to the tax collector The higher-income parent should consider spending the tax savings on the children to convince the lower-income parent to keep the pre May 1997 agreement in place

The user-de ned function dbo.pTitleCase() later in this section uses CHARINDEX() to locate the spaces separating words.

TO MAKE A LONG STORY SHORT:

Microsoft.Win32.OpenFileDialog MyOFD2 = new Microsoft.Win32.OpenFileDialog(); MyOFD2.InitialDirectory = c:\\ ; MyOFD2.Filter = All files (*.*)|*.*|Text files (*.txt)|*.txt ; MyOFD2.RestoreDirectory = true; bool dialogResult = MyOFD2.ShowDialog(); if (dialogResult == true) { string path2 = MyOFD2.FileName.ToString(); if (File.Exists(path2)) MyTextBox.Text = System.IO.File.ReadAllText(path2); }

Our tax law says that child support agreements made or varied after April 30, 1997, provide for payments that are non-deductible to the payor and non-taxable to the recipient The tax collector comes out ahead under these rules Consider keeping pre-May 1997 agreements intact to avoid the tax collector s win here

$ cat test12 #!/bin/bash # using the until command var1=100 until [ $var1 -eq 0 ] do echo $var1 var1=$[ $var1 - 25 ] done $ ./test12 100 75 50 25 $

It s time to turn to the Tax Planning Tip Sheet at the front of the book and review the strategies introduced in 2 Ask yourself, Can this tip apply to me Each Yes or Not Sure could lead to big tax savings for you and your family

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f you happen to be one of the millions of employees in Canada today, then you know that the Canada Revenue Agency (CRA) is not exactly bending over backward to provide you with tax relief Sure, I ll be talking to you

about the speci c deductions that you re entitled to, but here s a tip for those of you who are employees: While it s important to claim all the deductions possible, you need to focus your energy on other tax planning opportunities Why Simply put, the deductions available to employees are very limited, except in special situations You re going to do yourself a favour by reading this chapter and working with your employer to minimize your tax bill

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